Electoral Competition and Redistribution with Rationally Informed Voters
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Valentino Larcinese
In spite of the negligible probability that everyone has to cast a decisive vote, political information can be relevant for a number of private decisions. Under quite mild assumptions, the demand for information is increasing in income. Being informed affects responsiveness to electoral platforms and vote-seeking political parties should take this into account in their optimization process. As a consequence, redistribution is generally lower than what the median voter theorem predicts. Moreover, in contrast with what most literature takes for granted, an increase in inequality does not unambiguously increase redistribution. This is consistent with most empirical research in this field. Finally, an increase in the cost of information induces a reduction in redistribution.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Contributions Article
- Cash Constraints and Business Start-Ups: Deutschmarks Versus Dollars
- On-the-Job Learning, Firing Costs and Employment
- The Effect of the Nonprofit Motive on Hospital Competitive Behavior
- Electoral Competition and Redistribution with Rationally Informed Voters
- The Environmental Kuznets Curve: Exploring a Fresh Specification
- Uncertain R&D and the Porter Hypothesis
- Do Economists Recognize an Opportunity Cost When They See One? A Dismal Performance from the Dismal Science
- A Theory of Health Disparities and Medical Technology
- Entry-Level Products with Consumer Learning
- A Test for Collusion between a Bidder and an Auctioneer in Sealed-Bid Auctions
- Fatalistic Tendencies: An Explanation of Why People Don't Save
- Adjustment Costs and Irreversibility as Determinants of Investment: Evidence from African Manufacturing
- An Index For Venture Capital, 1987-2003
- Environmental Information Provision as a Public Policy Instrument
- Competition Policy and Exit Rates: Evidence from Switzerland
- Political Variables as Instruments for the Minimum Wage
